We improve SSA programs and operations and protect them against fraud, waste,
and abuse by conducting independent and objective audits, evaluations, and
investigations. We provide timely, useful, and reliable information and advice
to Administration officials, the Congress, and the public.

Authority

The Inspector General Act created independent audit and investigative units,
called the Office of Inspector General (OIG). The mission of the OIG, as spelled
out in the Act, is to:

Conduct and supervise
independent and objective audits and investigations relating to agency programs
and operations.

Promote economy, effectiveness,
and efficiency within the agency.

Prevent and detect fraud,
waste, and abuse in agency programs and operations.

Review and make recommendations
regarding existing and proposed legislation and regulations relating to
agency programs and operations.

Keep the agency head
and the Congress fully and currently informed of problems in agency programs
and operations.

To ensure objectivity, the IG Act empowers the IG with:

Independence to determine
what reviews to perform.

Access to all information
necessary for the reviews.

Authority to publish
findings and recommendations based on the reviews.

Vision

By conducting independent and objective audits, investigations, and evaluations,
we are agents of positive change striving for continuous improvement in the
Social Security Administration's programs, operations, and management and in
our own office.

MEMORANDUM

Date: December 21, 2006 Refer
To:

To: The Commissioner

From: Inspector General

Subject: Impact of Unauthorized Employment on Social Security Benefits
(A-14-05-14042)

OBJECTIVE

The objectives of our review were to assess: (1) the accuracy of unauthorized
employment information recorded on the Social Security Administration’s
(SSA) Numident Master File (NUMIDENT), and
(2) the impact of unauthorized employment on Social Security benefits.

BACKGROUND

Each year, SSA uses NUMIDENT and earnings information to inform the Department
of Homeland Security (DHS) about noncitizens who may be working illegally. SSA
sends DHS information about individuals who have earnings recorded under Social
Security numbers (SSN) that SSA assigned for nonwork purposes. The
information is sent to DHS in the form of an electronic data file called the
NonWork Alien (NWALIEN) file as required by law. The
file is sent approximately 6 to 18 months after earnings are first reported
to SSA.
According to DHS, resource priorities, data compatibility and possible data
accuracy problems have prevented it from making effective use of the unauthorized
earnings information. While SSA notifies DHS of possible unauthorized
employment, DHS is not required to tell SSA when it changes a person’s
work authorization status from unauthorized to authorized. Unless the
person informs SSA directly of such a change, NUMIDENT records continue to
show the person as not authorized for employment and SSA includes his or her
earnings on the NWALIEN file.

The Social Security Protection Act of 2004 (SSPA) Section 211, prevents
SSA from giving noncitizens credit toward future SSA benefits under Title II
of the Social Security Act if they were never authorized to work in the United
States (after this referred to as nonwork SSNs). The law only applies
to individuals who were assigned original nonwork SSNs January 1, 2004 or later. These
individuals have to later obtain work authorization to be insured for Title
II benefits. Individuals
assigned an original nonwork SSN before January 1, 2004 are not subject to
SSPA’s restrictions.

From a representative 5 percent segment of the NUMIDENT, we
identified 57,720 individuals who had prior earnings and, according to
their most recent SSN application, were not work authorized. From this
universe, we randomly selected 250 individuals for review. Our sample
represented all individuals recorded on the NUMIDENT file over the past 3 decades
who had earnings but, according to SSA’s records, were never assigned
an SSN for employment purposes. We obtained comprehensive earnings and
benefit information for each sample case and, when available, current immigration
and work authorization status from DHS’ Immigration and Customs Enforcement
(ICE). Further information
concerning the scope and methodology of this audit can be found at Appendix
B.

RESULTS OF REVIEW

Based on our review of information obtained from DHS, we estimate that more
than a third of work authorization information contained in SSA’s NUMIDENT
file for nonwork SSNs was no longer accurate. DHS found that work authorization
status had changed from unauthorized to authorized for over a third of our
250 sample cases. The remaining cases were either still unauthorized
or DHS could not locate immigration information for the individuals. Although
data that no longer reflects current work authorization status reduces the
usefulness of the NWALIEN file for DHS, we found that SSA could use data mining
techniques and the information it now records on SSN applications to increase
the usefulness of the NWALIEN file records.

We found that SSPA may have minimal impact on future SSA benefits to noncitizens
since most noncitizens provided nonwork SSNs were enumerated prior to implementation
of SSPA. Based on our sample results, we estimate that 378,640 individuals
in the NUMIDENT (1) were assigned nonwork SSNs before January 2004, (2)
have never been work authorized, (3) had $25.4 billion in Social Security earnings,
and (4) because they were assigned original nonwork SSNs before January 1, 2004,
will not be affected by SSPA’s restrictions (see Appendix B for details).

INTEGRITY OF WORK AUTHORIZATION INFORMATION ON THE NUMIDENT

The information we received from DHS in January 2006 showed that, over time,
work authorization status changed from unauthorized to authorized for more
than one-third of our 250 sample cases. Those changes were not shown
as reported to SSA and/or recorded on SSA’s records. Work authorization
status for the remaining cases was either still unauthorized as shown on SSA’s
records or could not be confirmed. DHS indicated that:

Employment was now authorized in 91 of the 250 cases (36.4 percent). These
individuals had become Legal Permanent Residents (LPR),
naturalized citizens or nonimmigrants with a current Employment Authorization
Document (EAD).

Employment was still not authorized in 82 of the 250 cases
(32.8 percent). These
individuals were either temporary visitors, foreign students or nonimmigrants
with expired EADs.

Individuals in 14 of the 250 sample cases were shown
as deported or in the U.S. illegally (5.6 percent).

Immigration
status could not be confirmed in 63 of the 250 cases (25.2 percent).
DHS could not locate a record for 54 of the 63 cases. Additionally,
for 9 of the 63 cases, DHS could locate the record but could not determine
current immigration status. For example, in 3 of the 9 cases, immigration
status had not been recorded.

-- IMAGE OMITTED FROM THIS TEXT-ONLY VERSION --

We found that work authorization information is no longer correct for at
least 36.4 percent of the NUMIDENT records in our sample. Therefore,
the same information may be incorrect for 420,000 of the estimated 1.15 million
NUMIDENT nonwork records associated with employment.

When SSA combined unauthorized employment and annual earnings information
to create the 2004 NWALIEN file and inform DHS of illegal employment, it
would have included 109 of the 250 cases in our NUMIDENT sample. Sample
results showed that work authorization information was either incorrect or
could not be confirmed for three fourths of the 109 NWALIEN records. Additional
data analysis showed that the unconfirmed cases have characteristics similar
to those where work is not authorized. For example, we found that the
average length of work history for both the unauthorized and unconfirmed
cases in our 250-case sample is 4 years, and about 30 percent of the
workers had Calendar Year (CY) 2004 earnings. In contrast, the average
length of work history for those now authorized to work is 11 years, and
65 percent had CY 2004 earnings. Based on the similarities of these
two groups, DHS may want to use both unauthorized and unconfirmed records
to determine which employers listed on the NWALIEN file are most likely to
engage in illegal hiring practices.

We believe that SSA and DHS should explore the use of data analysis to evaluate
NWALIEN data and make it more useful for monitoring possible unauthorized
employment. Such data mining would allow DHS to identify employers
who appear to use a high number of illegal workers. For
example, if resource limits impact the number of NWALIEN records that DHS
can examine, data mining would help DHS prioritize its work. DHS could
use data mining to identify and concentrate on only those employers who appear
to use a disproportionate number of unauthorized or unconfirmed employees,
or operate in sensitive industries.

USE OF DHS NUMBERS

Starting in March 2005, SSA required personnel to use new software procedures
known as SS-5 Assistant to help complete SSN applications. The SS-5
Assistant helps personnel enter the correct information for SSN applications,
by collecting and documenting the required evidence, including the DHS Alien
or Admission Numbers for all noncitizens and naturalized citizens. The SS-5
Assistant uses the DHS numbers to automatically query on-line immigration
records and verify immigration status.

SSPA prohibits SSA from giving noncitizens credit for benefits under Title
II of the Social Security Act if SSA neither assigned them original SSNs
prior to 2004, nor authorized work. We
analyzed nonwork SSN NUMIDENT records and Social Security earnings records
to assess the potential impact that SSPA and trends in unauthorized employment
might have on future SSA benefits. Between January 1972 and November 2004,
in one segment of the NUMIDENT, SSA assigned 373,600 individuals a nonwork
SSN. In the course of those 32 years, we found:

35.4 percent of the 373,600 applicants acquired work authorization status
and changed their status on SSA’s records;

49.2 percent of the 373,600
applicants did not have recorded earnings or change their work authorization
status on SSA’s records; and

15.4 percent of the 373,600 applicants had recorded earnings and did
not change their work authorization status on SSA’s records. We
sampled this group to evaluate the accuracy of employment authorization
information as recorded on the NUMIDENT and NWALIEN files. We also
used the group to delineate the number of individuals on SSA’s records
who are shown as unauthorized to work and potentially eligible for benefits.

Since the late 1990s, SSA has increased restrictions on who can receive
a nonwork SSN. This
policy change has resulted in a significant decrease in the number of nonwork
SSNs that SSA assigns each year. Between Fiscal Years (FY) 1998 and
2005, the number of nonwork SSNs assigned decreased by nearly 89 percent,
from 132,865 in FY 1998 to 14,686 in FY 2005. This decrease happened
to coincide with SSPA restrictions and will significantly reduce the impact
SSPA will have on SSA benefits.

If current trends continue, only a small percentage of individuals assigned
a nonwork SSN in 2005 will eventually find employment, remain unauthorized
to work and be subject to SSPA’s restrictions. This is especially
true if we consider that only 15.4 percent of the individuals in our
sample population who were originally assigned a nonwork SSN and found employment,
remained unauthorized to work on SSA’s records over time. In
addition, in our sample, we found that one-third of the 15.4 percent did
not report to SSA when their work authorization status changed.

Based on our sample results, we estimate there are 378,640 individuals on
the NUMIDENT with earnings who have never been authorized to work. All
were assigned nonwork SSNs before 2004 and are not subject to SSPA’s
restrictions. Since 1972, these individuals have earned an estimated
$25.4 billion in unauthorized employment (see Appendix B for further details). The
average age for this group in our 250 sample is 44, and no one was receiving
benefits at the time of our fieldwork.

As shown in the following table, we reviewed the future benefit eligibility
for the 159 sample cases DHS indicated were not authorized to work or
their work status was not confirmed. Specifically,
we determined whether these 159 individuals had accumulated sufficient
periods of unauthorized employment to be potentially eligible for Social
Security benefits.

Benefit Earned – Individuals in Our Sample Not Authorized
for Employment or Employment Status Was Unconfirmed by DHS

Employment Status Per DHS

Retirement Benefit

Survivor Benefit

Disability Benefit

No Benefit

Total

Not Authorized

5

17

5

55

82

Illegal Presence

0

2

3

9

14

Status Unconfirmed

5

10

11

37

63

Total

10

29

19

101

159

Of the 82 individuals in our sample who were not authorized to work on
DHS’ records, 27 had an average of 8 years’ employment and
were potentially eligible for some type of Title II benefit. Twenty-one
of the 27 had recent earnings and therefore are probably still working.

Five
of the 14 individuals classified as in the U.S. illegally had an average
of 9 years’ employment and enough earnings to be potentially
eligible for survivor or disability benefits. Four of the five had
recent earnings.

Although the work authorization status of 63 individuals
was unconfirmed, 26 had an average of 8 years’ employment and enough earnings to be
potentially eligible for Title II benefits. Nineteen of the 26 had
recent earnings.

Although individuals in our sample who were not authorized for employment
and continued to work may eventually earn a Title II retirement benefit,
some may change to an authorized work status with DHS or leave the U.S. before
receiving benefit payments.

CONCLUSION AND RECOMMENDATIONS

Work authorization information was incorrect or could not be verified for
61.6 percent of the records in our 250 case sample. Also,
38.4 percent of the individuals sampled were not authorized to work in the
U.S. In addition, although
DHS could not determine work authorization status for one out of every four
individuals in our sample, we could still identify their employer and this
gives those records potential enforcement value. SSA would make employer
work authorization programs more effective if it could correct immigration
and employment status recorded on nearly 36.4 percent of all nonwork
records.

To improve the integrity of work authorization information, SSA should consider
using the DHS Alien and Admission numbers it collects in the SSN application
process to check immigration and work authorization status as part of the
NWALIEN process. If work authorization status changed during the past
year, SSA could record the change and exclude the individual from the NWALIEN
file. In discussions with DHS, SSA could consider different NWALIEN
file characteristics to determine whether there are ways to classify or group
NWALIEN records to show the likelihood that work authorization may have changed. This
information would help DHS prioritize records for review and make more efficient
use of its resources. Lastly, since an estimated 6 percent of the records
in our sample involved individuals who were in the U.S illegally, SSA could
work with DHS to identify these records as priority cases for DHS.

We recommend SSA consider:

Working with DHS to determine what information could be added to the
NWALIEN file to improve its usefulness.

Working with DHS to determine the types of data mining techniques that
would improve the usefulness of unauthorized employment information.

AGENCY COMMENTS

SSA agreed with the intent of our recommendations. SSA stated that
it has worked with DHS in the past to refine the NWALIEN file to meet DHS’ requirements. However,
SSA stated that neither SSA nor DHS is in a position to know what additional
information might be helpful. As a result, SSA does not consider our
recommendations feasible under current circumstances and considers them closed. The
Agency’s comments are included in Appendix C.

In November 2004, we randomly selected a 5 percent segment of the Social
Security Administration’s (SSA) Numident Master File (NUMIDENT) and
collected summary earnings information for each segment record. From
the segment, we copied records for 57,720 individuals with earnings who,
according to their last Social Security number (SSN) application, were not
work authorized.

From the 57,720 records, we randomly selected a sample of 250 individuals
for review. For each individual record sampled, we obtained comprehensive
earnings and benefit information and, where available, current immigration
status from the Department of Homeland Security (DHS) Immigration and Customs
Enforcement (ICE). We also researched key laws, regulations, policies
and procedures pertaining to immigration status and employment authorization. We
spoke with SSA and DHS staff about the impact the rules and regulations have
on Agency programs.

To obtain a second audit population, we copied Segment 17 of the NUMIDENT
records for all 954 individuals who were assigned original nonwork SSNs from
January 1, 2004 through August 19, 2005. We collected summary benefit
and earnings information for each of the 954 records. We also reviewed
the documentation that 158 of the 954 individuals submitted with their SSN
applications. SSA processed the 158 applications from March 2005 through
May 2005.

We conducted our review in accordance with generally accepted government
auditing standards. Our audit work was performed between March 2005
and February 2006 at DHS’ headquarters in the District of Columbia
and at SSA’s headquarters in Baltimore, Maryland. Our work focused
on the Office of Systems.

SAMPLE RESULTS – Estimated Earnings for Individuals
in the Sample who are not Authorized to Work

Population and Sample Size

Attributes

Sample Universe – 1 segment of the
NUMIDENT

21,406,075

Sample Population – Individuals in
the Segment Who Have Earnings and are Not Authorized to Work

57,720

Sample Size

250

Sample Results – Estimate of Individuals
Not Authorized to Work and Had Earnings Prior to January 2004

Number of Individuals

Amount ofEarnings

Sample Individuals who are Not Authorized to Work and
had Earnings Prior to January 2004

Office of the Inspector General (OIG) Draft
Report, "Impact of Unauthorized Employment on Social Security
Benefits" (A-14-05-14042)--INFORMATION

Please accept our “revised” response to the subject draft report. After
a discussion with your staff, we have reconsidered our response to the recommendations
and would like our original comments dated December 6, 2006 disregarded.

Please let me know if you have any questions. Staff inquiries may
be directed to
Ms. Candace Skurnik, Director, Audit Management and Liaison Staff, at extension
54636.

Attachment:
SSA Revised Response

COMMENTS ON THE OFFICE OF THE INSPECTOR GENERAL’S (OIG)
DRAFT REPORT, “IMPACT OF UNAUTHORIZED EMPLOYMENT ON SOCIAL SECURITY
BENEFITS”(A-14-05-14042)

Thank you for the opportunity to review and provide comments on this draft
report. The Social Security Administration (SSA) is committed to ensuring
that individuals who are authorized to work are provided proper credit and
proper benefits based on an accurate work record. The report does
not identify any fraud, waste or abuse in the administration of SSA programs. Rather,
the report suggests that SSA undertake activities outside the scope of its
mission without regard to SSA’s current budget environment. In
this light, we are further concerned that the report states SSA should consider
undertaking such activities in order to assist the Department of Homeland
Security (DHS) given DHS’ limited resources. While SSA could “consider
working with DHS” to find ways to improve the usefulness of the Nonwork
Alien (NWALIEN) file, it is not SSA’s mission to verify employment
authorization status. Updating employment authorization status in the
Numident or performing any extensive data analysis before submitting the
NWALIEN file could be labor intensive. Any costs incurred from providing
services that are not part of SSA’s mission cannot be borne by the
Social Security trust funds without the proper reimbursement.

There are additional concerns regarding the two objectives of the report. The
first objective is, “to assess the accuracy of unauthorized employment
information recorded on SSA’s Numident Master File.” The
report incorrectly states that the work authorization data as recorded in
SSA records is inaccurate. When a noncitizen applies for an original
or replacement Social Security number (SSN) card, SSA verifies with DHS all
immigration documents presented in support of the SSN application. Thus,
the Numident serves as a “snapshot in time” as it records the
individual’s work authorization status at the time the SSN card was
issued. OIG did not assess the accuracy of the work authorization status
at the time the SSN card was issued; rather, OIG assessed whether the work
authorization status as recorded in SSA’s records reflected the individual’s
current work authorization status. The Numident, however, is not intended
and does not act as a repository of work authorization status or contain
earnings information. Only DHS can determine current work authorization
for a noncitizen. Therefore, to suggest that the Numident file does
not accurately record the “unauthorized” work status of an individual
at a certain date, other than the date that the file is created, misrepresents
the function and purpose of the Numident file.

The second objective of the report is “to assess the impact of unauthorized
employment on Social Security benefits.” It is not clear why
OIG believes that payment of benefits to noncitizens who qualify for those
benefits under current law is an area of concern. SSA administers the
law as written. Further, we note that a citizen who is not authorized
to work today may well become eligible to work at a future time; conversely,
a noncitizen who is authorized to work today may lose that authorization
at a future time. Thus, under current law, work authorization or lack
of work authorization—or even lawful or unlawful presence in the United
States—at any point in time is not a predictor of eligibility for benefits
at retirement age.
In the report, OIG suggests that SSA annually re-verify work authorization
status in preparation of the NWALIEN file in order to assist DHS in targeting
worksite enforcement. SSA currently verifies and, if needed, updates
the work authorization status of all noncitizens at the time the noncitizen
applies for Social Security benefits to ensure that he or she meets certain
factors of benefit entitlement, such as lawful presence and work authorization. (At
any time, an individual may notify SSA of a change in work authorization
status.) Given that the Numident information has no adverse impact
on SSA operations or on the expenditure of trust fund monies, it is not clear
why SSA should expend trust fund resources to make changes that have no benefit
to the Agency or the public. SSA is very concerned about the finding
that DHS could not determine immigration/work status on 25 percent of OIG’s
sample for this review. This in itself would seem to be an impediment
to enforcement action that should be addressed by DHS. DHS has indicated
it is working on improving its databases. When their work is complete,
it should make it easier for them to track the status of noncitizens.

Another OIG conclusion in the report was that if SSA captured the DHS Alien
or Admission numbers through SS-5 Assistant, SSA would be able to use that
information when developing the NWALIEN file and exclude those individuals
that had a change in employment status. The inclusion of the DHS Alien
or Admission number would not change the immigration and employment status
on SSA’s records. (Currently, an individual must notify SSA of
a change in work authorization status; SSA cannot accept the change from
any other source.)

Finally, the recommendations made in this report may be moot in the near
future, as the House and Senate-passed immigration reform bills (H.R. 4437
and S. 2611, respectively) both include provisions to make mandatory an employment
eligibility verification system and S. 2611 would repeal the requirement
that SSA provide the NWALIEN file to DHS, so using limited resources to explore
changes would be of questionable value. Although the 109th Congress
has adjourned, similar proposals may be introduced in the 110th Congress. As
the report indicates, SSA has acted to reduce the number of nonwork SSNs
to an insignificant number; therefore, the problem of noncitizens employed
based on an SSN issued for nonwork purposes is of limited duration.

Recommendation 1

SSA should consider working with DHS to determine what information could
be added to the NWALIEN file to improve its usefulness.

Comment

We agree with the intent of this recommendation. SSA has worked with
DHS in the past to refine the file to meet its requirements. SSA works
cooperatively with DHS in a number of areas and is certainly willing to continue
to consider any proposal for reimbursable work that DHS might offer. However,
DHS has not attempted to use the NWALIEN file in any meaningful way, so neither
SSA nor DHS is in a position to know what additional information might be
helpful. We also note that currently, SSA only has the legislative
authority via 8 U.S.C. 1360(c)(2) to provide the following data from the
earnings record: 1) the name and address of the alien; 2) the name
and address of the person reporting the earnings; and 3) the amount of earnings. SSA
cannot disclose additional data from the earnings record (which is tax return
data) unless there is an expressed authorization within section 6103 of the
IRC (26 U.S.C. § 6103). DHS would have to seek legislation which
would authorize SSA to provide additional data from its earnings records
to the NWALIEN file.

Therefore, based on our concerns and given that work authorization status
information in SSA’s files is never going to be as current as that
in DHS’ own files, we do not believe that there is any additional action
SSA could take to improve DHS capabilities. Having completed its consideration
of this recommendation, SSA does not consider this recommendation feasible
under current circumstances and considers it closed.

Recommendation 2

SSA should consider working with DHS to determine the types of data mining
techniques that would improve the usefulness of unauthorized employment information.

Comment

We agree with the intent of the recommendation; however DHS has purview
over the collection and maintenance of information related to work eligibility
and would be in the best position to identify effective data mining techniques
of its records concerning unauthorized employment information. Moreover,
SSA would need to ensure that any proposal for disclosing additional information
from SSA records to DHS would be authorized by applicable statutes and regulations. There
would also be concerns as the work authorization information SSA has on record
may not be updated and data mining information that may not be up to date
could raise significant concerns about accuracy.

SSA works cooperatively with DHS in a number of areas and is certainly willing
to continue to consider any proposal for reimbursable work that DHS might
offer. However, as stated in our response to recommendation 1, DHS
has not attempted to use the current unauthorized employment information
(NWALIEN file) that we provide in any meaningful way, so neither SSA nor
DHS is in a position to know what additional information or data mining might
be helpful.

Therefore, based on our concerns and given that DHS is fully capable of
undertaking data mining techniques with its files of current work authorization
status, we do not believe that there is any additional action SSA could take
to improve DHS capabilities. Having completed its consideration of
this recommendation, SSA does not consider this recommendation feasible under
current circumstances and considers it closed.

For additional copies of this report, please visit our web site at www.socialsecurity.gov/oig or
contact the Office of the Inspector General’s Public Affairs Specialist
at (410) 965-3218. Refer to Common Identification Number
A-14-05-14042.

DISTRIBUTION SCHEDULE

Commissioner of Social Security
Office of Management and Budget, Income Maintenance Branch
Chairman and Ranking Member, Committee on Ways and Means
Chief of Staff, Committee on Ways and Means
Chairman and Ranking Minority Member, Subcommittee on Social Security
Majority and Minority Staff Director, Subcommittee on Social Security
Chairman and Ranking Minority Member, Subcommittee on Human Resources
Chairman and Ranking Minority Member, Committee on Budget, House of Representatives
Chairman and Ranking Minority Member, Committee on Government Reform and
Oversight
Chairman and Ranking Minority Member, Committee on Governmental Affairs
Chairman and Ranking Minority Member, Committee on Appropriations, House
of Representatives
Chairman and Ranking Minority, Subcommittee on Labor, Health and Human Services,
Education and Related Agencies, Committee on Appropriations,
House of Representatives
Chairman and Ranking Minority Member, Committee on Appropriations, U.S. Senate
Chairman and Ranking Minority Member, Subcommittee on Labor, Health and Human
Services, Education and Related Agencies, Committee on Appropriations, U.S.
Senate
Chairman and Ranking Minority Member, Committee on Finance
Chairman and Ranking Minority Member, Subcommittee on Social Security and
Family Policy
Chairman and Ranking Minority Member, Senate Special Committee on Aging
Social Security Advisory Board

-- FOOTNOTES FOLLOW --

The NUMIDENT is a result
of SSA’s enumeration process. When individuals apply for an
SSN, SSA staff assigns an SSN and records information from the application
on the NUMIDENT.

As of October 2003, nonwork
SSNs are assigned when DHS has not authorized employment and the noncitizen
needs the SSN to qualify for benefits that rely on Federal funding such
as food stamps, or where a State or local government requires an SSN for
a noncitizen legally in the United States to receive benefits from a State
public assistance program. See 20 C.F.R. §§ 422.104
and 422.107. SSA requires noncitizens who apply for an SSN to present
proof of age, identity, and work authorization status, and SSA verifies
all immigration documents (i.e., visas, employment authorization status,
and permanent resident alien cards, etc.) with DHS’ US Citizen and
Immigration Services (formerly Immigration and Naturalization Services)
before assigning an SSN. For an individual eligible for a nonwork
SSN, SSA assigns a number and issues an SSN card bearing the legend, “NOT
VALID FOR EMPLOYMENT.”

Pursuant to § 414
of Pub. L. 104-208, 110 Stat. 3009, (1996) the Illegal Immigration
Reform and Immigrant Responsibility Act of 1996, SSA is required to
include in the file the names and addresses of nonwork numberholders and
employers reporting the earnings, as well as the amount of the earnings.

Id.

PL 108-203 § 211, “Prohibition
on Payment of Title II Benefits to Persons Not Authorized to Work in the
United States.”

The restrictions of Section
211 of the SSPA also do not apply to the individual who was admitted to
the U. S. as a nonimmigrant visitor for business, or as an alien crewman
under specified provisions of the Immigration and Nationality Act, Section
101(a) (15)(B) and (D).

SSA stores NUMIDENT records
in equal segments by arranging records in numerical order according to
the last two digits of the SSN (i.e. 80-84, 85-89, 90-94, etc.). Each
segment represents 5 percent of all NUMIDENT records and there are 20 total
segments. It is common practice for SSA to use a segment to estimate
results to the entire file. For our population, we randomly selected
NUMIDENT Segment 17 and, as of November 1, 2004, it had 21,406,075 records. As
of that date, SSA had assigned nonwork SSNs to 373,600 individuals in Segment
17, and 57,720 of these individuals had prior earnings.

A LPR is a noncitizen
who has been given permission by DHS to make his or her permanent home
in the U. S. Individuals who have permanent residence are issued
a green card and can travel as much as they like. Their place of
residence must be the U.S. and kept on a permanent basis.

Noncitizens who are temporarily in the U.S. may apply for an EAD. An
EAD permits work in the U.S. and the specific categories that require an
EAD include (but are not limited to) asylum seekers, refugees, students
seeking particular types of employment, applicants for permanent residence
status, people in or applying for temporary protected status, fiancés
of U.S. citizens, and dependents of foreign government officials. An
EAD is not required for a LPR.

We referred these 14
individuals to our Office of Investigations (OI) for additional review. OI
has referred the cases to DHS.

The estimated
1.15 million nonwork NUMIDENT records with recorded earnings is based on
multiplying our sample population—57,720 nonwork records with earnings
in 1 of 20 segments of the NUMIDENT—by 20 segments. The 420,000
potentially incorrect nonwork records associated with earnings is based
on multiplying the 1.15 million records by 36.4 percent, the percentage
of sample cases where employment authorization changed and SSA was not
notified of the change.

The 109 cases included
59 cases where authorized employment information was incorrect, 21 where
employment status was not confirmed, and 29 where employment was still
not authorized.

Employers who report
unauthorized earnings are identified on the NWALIEN record.

Sensitive industries
would include airlines, seaport management, etc.

The SS-5 Assistant is
a set of computer screens and logic designed to guide Social Security
staff in completing applications for an SSN. It enhances the SSN
application process by helping users follow existing policies and collect
the correct evidence.

In cases where the Alien
or Admission Number was not recorded, the SSN information was taken outside
the regular SS-5 process, usually in conjunction with applications for
Social Security benefits.

Pursuant to § 414
of Pub. L. 104-208, 110 Stat. 3009, (1996) the Illegal Immigration
Reform and Immigrant Responsibility Act of 1996, SSA is required
to include in the file the names and addresses of nonwork number holders
and employers reporting the earnings, as well as the amount of the
earnings. The inclusion of additional fields would require legislative
action.

POMS RM 00203.510. To
compare current and past policies for the assignment of nonwork SSNs,
see current and prior versions of RM 00203.510, especially November
2, 2001 – February 24, 2002.

We determined future
benefit eligibility based on date of birth, Social Security earnings
through 2004 and the onset of death, retirement or disability. We
did not include nonearning factors that could prevent benefit eligibility,
such as an illegal immigration status.

We found employment now
authorized (i.e. incorrect on Social Security records) in 91 of the 250 sample
cases (36.4 percent), and DHS could not confirm or determine employment
status in 63 cases (25.2 percent). This totals 61.6 percent.

We found employment
still not authorized in 82 of the 250 sample cases (32.8 percent) and
individuals in 14 sample cases were shown as deported or in the U.S.
illegally (5.6 percent). This totals 38.4 percent not authorized
to work.

SSA stores NUMIDENT
records in equal segments by arranging records in numerical order according
to the last two digits of the SSN (i.e. 80-84, 85-89, 90-94, etc). Each
segment represents 5 percent of all NUMIDENT records and there are 20
segments in total. It is common practice for SSA to use a segment
to estimate results to the entire file.For
our population, we randomly selected NUMIDENT Segment 17 and, as of November
1, 2004, it contained 21,406,075 records.

Overview of the Office
of the Inspector General

The Office of the Inspector General (OIG) is comprised of our Office of Investigations
(OI), Office of Audit (OA), Office of the Chief Counsel to the Inspector General
(OCCIG), and Office of Executive Operations (OEO). To ensure compliance with
policies and procedures, internal controls, and professional standards, we
also have a comprehensive Professional Responsibility and Quality Assurance
program.

Office of Audit

OA conducts and/or supervises financial and performance audits of the Social
Security Administration’s (SSA) programs and operations and makes recommendations
to ensure program objectives are achieved effectively and efficiently. Financial
audits assess whether SSA’s financial statements fairly present SSA’s
financial position, results of operations, and cash flow. Performance audits
review the economy, efficiency, and effectiveness of SSA’s programs and
operations. OA also conducts short-term management and program evaluations
and projects on issues of concern to SSA, Congress, and the general public.

Office of Investigations

OI conducts and coordinates investigative activity related to fraud, waste,
abuse, and mismanagement in SSA programs and operations. This includes wrongdoing
by applicants, beneficiaries, contractors, third parties, or SSA employees
performing their official duties. This office serves as OIG liaison to the
Department of Justice on all matters relating to the investigations of SSA
programs and personnel. OI also conducts joint investigations with other
Federal, State, and local law enforcement agencies.

Office of the Chief Counsel to the Inspector General

OCCIG provides independent legal advice and counsel to the IG on various matters,
including statutes, regulations, legislation, and policy directives. OCCIG
also advises the IG on investigative procedures and techniques, as well as
on legal implications and conclusions to be drawn from audit and investigative
material. Finally, OCCIG administers the Civil Monetary Penalty program.

Office of Executive Operations

OEO supports OIG by providing information resource management and systems security.
OEO also coordinates OIG’s budget, procurement, telecommunications, facilities,
and human resources. In addition, OEO is the focal point for OIG’s strategic
planning function and the development and implementation of performance measures
required by the Government Performance and Results Act of 1993.